Natwest Investors - NWG

Natwest Investors - NWG

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Stock Name Stock Symbol Market Stock Type
Natwest Group Plc NWG London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
1.20 0.45% 265.40 16:35:09
Open Price Low Price High Price Close Price Previous Close
266.70 264.00 268.00 265.40 264.20
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Industry Sector
BANKS

Top Investor Posts

Top Posts
Posted at 15/3/2023 18:13 by smurfy2001
Nothing like scaring investors as inflation comes down and interest rates peak.
Posted at 05/1/2023 15:27 by chinese investor
..but do I ?

Chinese Investor (NWG) 29 Jul 2022 - 07:10:23
I'm gonna sell at 280p !

Posted at 29/12/2022 01:53 by smurfy2001
By Roland Head. I think FTSE 100 bank stock NatWest Group (LSE: NWG) offers investors the opportunity to profit from strong earnings growth and a market-beating dividend yield.

Rising interest rates are providing a long-awaited boost to the bank’s profits. NatWest’s net interest income rose by £771m to £2,640m during the third quarter. This helped to increase underlying profits for the period by 76% to £1,333m.

One risk is that late payments on mortgages and other loans could rise next year if the UK economy continues to slow. NatWest set aside an extra £247m to cover possible future losses during the third quarter, but management say there’s no sign of any repayment problems yet.

Broker forecasts suggest earnings will rise by a further 31% in 2023. Despite this strong outlook, the stock currently trades on just six times 2023 earnings with a dividend yield of 6.1%. I see NatWest as one of the best stocks to buy for 2023.

https://www.fool.co.uk/2022/12/20/top-british-stocks-for-investors-to-buy-for-2023/

Posted at 28/10/2022 12:37 by polar fox
Something of a wake-up call, eh? Precisely why I mentioned LLOY's disappointing Q3 yesterday. I'm expecting worse in the months ahead as the recession unfolds - lots of data and action to come between next week and the all-important Autumn Statement on the 17th.

Here are one broker's (not particularly insightful) comments:

On home shores, NatWest slid after it reported flat third-quarter profit of £1.1bn amid a deteriorating outlook. This fell short of expectations of £1.2bn.

Richard Hunter, head of markets at Interactive Investor, said: "NatWest has rounded off the banks’ reporting season in mixed fashion, with some enforced financial write downs blotting the overall copybook.

"The planned withdrawal from the Republic of Ireland through its Ulster Bank subsidiary has led to a charge on the mortgage book of some €420m. In addition, NatWest has succumbed to the necessity of making bad debt provisions in line with most of its peers. Whereas the group bucked the trend in the second quarter by releasing £18m of provisions, for this quarter a charge of £242m has been made.

"This leaves the cumulative figure for this year as a provision of £193m, which compares to a release of £904m in the corresponding period last year, and the £1bn swing has affected overall numbers."

unquote

Posted at 09/8/2022 13:03 by smurfy2001
They can't do that right now otherwise gov holding would exceed 50%.
I understand directed buy back cannot be done as it's per annum.
If the gov sold down their stake say another 5% NatWest could buy back and cancel like before taking care not to let the gov holding exceed 50%.
Benefit for new investors is a potentially higher "rebased" dividend.
Like Aviva's recent "special dividend" there might be an opportunity to buy back more shares than you originally held and take advantage of a potentially higher "rebased" dividend - it's something I'd be interested in doing if possible..

Posted at 30/7/2022 07:48 by smurfy2001
Even prior to today’s surge, the price had risen by 14% over the last year, as compared to a gain of 3.8% for the wider FTSE100. Nor has this return diminished investor appetite, with the market consensus of the shares not only remaining at a "strong buy" but also maintaining the position of NatWest as the preferred play in the sector.

www.ii.co.uk/analysis-commentary/natwest-shares-surge-dividend-investors-receive-major-boost-ii524823

Posted at 29/7/2022 10:18 by smurfy2001
Natwest 'awash with cash' but challenges are 'on the near horizon'
Head of markets at interactive investor Richard Hunter:

'NatWest’s continued progress has left the bank awash with cash, which has resulted in a bumper return for shareholders.

'The interim dividend increase takes the ordinary projected yield to 4.8%, and with the special dividend of 16.8 per share, the yield is turbocharged to around 12%. In addition, the bank intends to continue this elevated level of returns while not discounting further share buybacks or even acquisition opportunities should they arise.

'Coupled with the intention further to reduce the government stake of 48%, there is much demand on the bank’s capital, which it is comfortably able to provide at these levels.

'Quite apart from the strength of the capital position, NatWest has also distanced itself from its peers by announcing a net release of £18 million for the half-year (or £46 million in the so-called “Go-Forward Group”), at a time when the other UK banks are returning to impairment provisions given a weakening economic outlook. NatWest, for its part, maintains that there are no emerging signs of stress among its customers, who are generally continuing to build individual war chests ahead of what could be a tough winter.

'At the same time, loan growth of 2.6% to £9 billion has been largely propelled by further growth in retail mortgages, despite headlines which might have been suggesting otherwise over recent months. Alongside a generally rising interest rate environment, traditionally positive for the banks, the Net Interest Margin has made more progress and currently stands at 2.72%, up from 2.46% in the previous quarter.

'Amid all the progress, there are some challenges on the near horizon, not least of which is the potential for further UK economic deterioration. NatWest remains committed to keeping close to any worsening trends, however, and in the meantime continues to increase prudent lending against the backdrop of a robust balance sheet. The government stake will continue to overhang the shares, although the direction of travel is becoming established in reducing the 48% holding further.

'The elements which have differentiated NatWest from its peers have also been reflected in a uniquely positive share price performance, as evidenced by numbers which have clearly delighted investors. Even prior to today’s surge, the price had risen by 14% over the last year, as compared to a gain of 3.8% for the wider FTSE100. Nor has this return diminished investor appetite, with the market consensus of the shares not only remaining at a strong buy but also maintaining the position of NatWest as the preferred play in the sector.'

Posted at 28/7/2022 14:56 by polar fox
The latest Q2 Consensus has become available this week, on NWG Investors. Interesting read.

Regarding tomorrow's interims, the consensus is: 3.4p Ord. plus 1.8p Special, for a total of 5.2p.
For the year, the amounts are 10.1p and 7.5p, for a total of 17.3p - the discrepancy is explained in the notes.

We'll see tomorrow what the girls have decided and whether any Ord/Special split is indeed involved.

Posted at 18/2/2022 17:26 by polar fox
I've lifted this from ShareCast - it gives a flavour of opinion:

AJ Bell analyst Danni Hewson said the bank's better than expected earnings and hike in the outlook were, "to some extent, baked in", adding that investors may be concerned about the possibility of an increase in bad debts as its customers face a cost of living crisis.

"This could outweigh any boost to profitability from higher (interest) rates," she said.

“Natwest seems relaxed on this score and has actually reduced its guidance on impairments – whether that view will be tested in 2022 remains to be seen. If it holds, then Natwest should be in a position to dole out more generous shareholder returns, which is a key attraction of investing in the sector. It should also enable it to further reduce the government’s stake by buying shares."

“Natwest has slipped a little bit behind target on cost reduction, thanks to higher inflation, which may be adding to some investor nervousness and the company is yet to see any progress on that key measure of profitability – net interest margin.”
unquote

Posted at 14/2/2022 07:15 by johnwise
HSBC, Barclays among banks financing most oil and gas expansion as pressure on ESG ramps up
ShareAction is calling on investors to use their shareholder rights to demand that banks implement policies to restrict oil and gas expansion. in the upcoming AGM season
https://www.fnlondon.com/articles/hsbc-barclays-among-banks-who-finance-most-oil-and-gas-projects-20220214

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